HSBC’s Emerging Market Index Shows Faster Growth in Q4

By Ben Levisohn

HSBC’s Emerging Market Index–a leading indicator of economic growth in developing markets–rose to 52.9 during the fourth quarter of 2012, up from 52.2 during the third quarter, HSBC said in a report today. Despite the uptick, however, the index still remains below its historic average of 54.4.

Narinder Nanu/Agence France-Presse/Getty Images

Stephen King, HSBC’s chief economist, said in a press release:

Although hardly buoyant economic growth, recent improvements are encouraging, especially as complemented by encouraging signs for the early months of 2013. Much of the growth is domestic as export orders are still contracting, although not at the worrying pace seen mid-year.

The index was boosted by a return to growth in China and Brazil during the fourth quarter, as well as substantial growth out of Russia, which saw output growth reach its highest level since the second quarter of 2010. India, Mexico and Turkey also experienced sharper increases in economic growth during the year’s last three months.

About Emerging Markets Daily

Emerging markets have been synonymous with growth, but the outlook for individual nations is constantly changing. Countries from Brazil and Russia to Turkey face challenges including infrastructure bottlenecks, credit issues and political shifts. Barrons.com’s Emerging Markets Daily blog analyzes news, data and research out of emerging markets beyond Asia to help readers navigate the investment landscape.

Barron’s veteran Dimitra DeFotis has been blogging about emerging market investing since traveling to India and Turkey. Based in New York, she previously wrote for Barron’s about U.S. equity investing, including cover stories and roundtables on energy themes. Dimitra was among the first digital journalists at the Chicago Tribune and started her career as a police reporter at the Daily Herald in the Chicago suburbs. Dimitra holds degrees from the University of Illinois and Columbia University, where she was a Knight-Bagehot Fellow in the business and journalism schools. She studies multiple languages and photography.